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Healthcare in Malaysia, where our guest builds

Barry Ooi left tech to build Chengal Centre, a private mental-health clinic in Kuala Lumpur. This brief covers the Malaysian healthcare system around his work: who needs mental-health care, who pays for health care, where the money is moving and the rules clinics work within.

Malaysia
Checked 20 Oct 2026 · every figure linked to its source · next review Jan 2027

01At a glance

4.6%

of Malaysian adults had depressive symptoms in the 2023 National Health and Morbidity Survey1.

Screening result, not a diagnosis
16.5%

of Malaysian children had mental health problems in 2023, according to Parliament's Special Select Committee on Health2.

Screening result, not a diagnosis
623

registered psychiatrists in Malaysia in November 2024, 385 of them in government hospitals, according to Health Minister Dzulkefly Ahmad3.

Registered includes academic and non-practising psychiatrists
RM89.8bn

spent on health in Malaysia in 2024, equal to 4.7% of GDP, according to the Health Ministry's National Health Accounts4.

All health spending, public and private
76%

of private health spending in Malaysia is paid out of pocket by households. Private insurance covers only 17%5.

Share of private health spending (2023), not of all health spending

02Mental health: who needs care

Depression screening by age, NHMS 2023 (selected bands)

Aged 16 to 19
7.9%
Aged 20 to 29
7.6%
Highest older group
4.1%
Lowest older group
2.4%

In the 2023 National Health and Morbidity Survey, 7.9% of Malaysians aged 16 to 19 and 7.6% of those aged 20 to 29 screened positive for depression, compared with between 2.4% and 4.1% in each older age group6.

The older age groups are shown as the top and bottom of their range. NHMS is a screening survey, so these figures count people who screened positive, not diagnoses.

A parliamentary committee was told that the economic burden of mental health issues in Malaysia could reach RM25.3 billion by 2030 if no effective action is taken7. No method for the estimate was published.

Young people, suicide and support

If this raises something for you or someone you know: Befrienders Kuala Lumpur, 03-7627 2929 (24 hours, free and confidential, befrienders.org.my); Talian HEAL 15555 (Ministry of Health, 8am to midnight); in an emergency call 999.
  • Support after a death. In September 2026 the Health Ministry launched a National Suicide and Fatal Injury Registry Malaysia, to improve forensic data on suicide deaths and fatal injuries, and Postvention Services Guidelines to help people affected by a suicide death receive psychosocial support8.
  • Adolescents. Citing the 2022 National Health and Morbidity Survey, psychiatrist Prof Dr Ng Chong Guan told Bernama that 26.9% of adolescents screened positive for depression, 36.1% of girls and 17.7% of boys, and 13.1% had experienced suicidal thoughts9.
  • Suicides. Police data cited by Health Minister Dzulkefly Ahmad in September 2026 recorded 1,079 suicides in Malaysia in 2025, compared with 1,114 in 202410.
Police counts may not capture every death. The adolescent figures are screening results, not diagnoses.

03How AI is reshaping mental-health care

What the trials and tests show

  • A trial. In a US clinical trial of the generative-AI therapy chatbot Therabot, 106 people with depression, anxiety or eating disorders were randomly selected for four weeks of access. After eight weeks, those with depression reported a 51% average reduction in symptoms, though the researchers said such tools still need clinician oversight11.
  • A stress test. A Stanford study testing five popular therapy chatbots in scripted scenarios found they showed more stigma toward alcohol dependence and schizophrenia than toward depression, and one of them failed to recognise suicidal intent in a test prompt12.
  • A company estimate. OpenAI estimates about 0.15% of ChatGPT's weekly active users have conversations with explicit indicators of potential suicidal planning or intent13.
The Therabot result is a before-and-after change in one group of participants. The Stanford findings come from lab scenarios, not patient outcomes. The OpenAI figure is the company's own estimate.
If this raises something for you or someone you know: Befrienders Kuala Lumpur, 03-7627 2929 (24 hours, free and confidential, befrienders.org.my); Talian HEAL 15555 (Ministry of Health, 8am to midnight); in an emergency call 999.

What professional bodies say, and AI in Malaysia

  • United States. The American Psychological Association advised in November 2025 that generative-AI chatbots and wellness apps should not replace a qualified mental health provider, warning that generative AI cannot diagnose or treat psychological disorders14.
  • Malaysia, front desk. Malaysia Healthcare Travel Council named IHH's Island Hospital in Penang its Flagship Medical Tourism Hospital for 2025. The hospital uses an AI chatbot to answer international patients' enquiries and book appointments15.
The trial, the stress test and the advisory are all from the US, and none of them tests a Malaysian service. The Malaysian example is front-desk AI, not clinical or mental-health care, and no Malaysian equivalent of the APA advisory was found when this brief was checked. The Health Ministry's own AI plans are listed under rules and plans below.

04Where the money is moving

Who pays for health care

38.8%

Household out-of-pocket spending was the second-largest source of health funding in Malaysia in 2024, at 38.8% of total health expenditure, according to the Health Ministry's National Health Accounts16.

This is a share of all health spending, not of private spending.

Health Minister Dzulkefly Ahmad described Malaysia's public-private split in health spending as 'almost like now 50-50' and said private spending would surpass public 'soonest'17.

Deals near the sector

  • Digital employee health. Malaysia-based digital employee health and wellbeing provider Naluri raised a US$5 million Series B round in August 2025, led by TELUS Global Ventures through the Pollinator Fund for Good, bringing its total Series B funding to US$14 million18. Naluri has also signed a commercial deal with TELUS Health to serve TELUS's Employee Assistance Programme clients in eight Southeast Asian markets19.
  • Private hospitals. Sunway Healthcare raised nearly RM3 billion in Malaysia's biggest listing in nine years, closing 28% above its RM1.45 offer price on its 18 March 2026 debut and valuing the group at RM21.3 billion20.
Naluri is one company, so its round and contract are one data point, not a market trend. The Sunway figures are debut-day figures for a hospital group, not mental health.

Southeast Asian healthtech startup funding (Tracxn)

2023
US$599M
2024
US$123M

Southeast Asian healthtech startups raised US$123 million in 2024, down 79% from US$599 million in 2023, with Singapore taking 75%, according to Tracxn21.

2024 data, reported in March 2025. It covers all of healthtech, not mental health.

05Malaysia's health plans, budgets and rules

Plans, budgets and law

  1. National plan. The Health Ministry's National Strategic Plan for Mental Health 2020-2025, whose period has now ended, set eight strategies, including a target of at least one clinical psychologist in hospitals by 202522.
  2. Psychiatrist target. The Health Ministry set a target of one psychiatrist per 50,000 people by 2025, which it said would need 720 psychiatrists23.
  3. Budget 2024. Khazanah Research Institute estimated that about 0.89% of the Budget 2024 health allocation went specifically to mental health, down from 1.11% in Budget 202324.
  4. Decriminalisation. Attempted suicide stopped being a crime in Malaysia on 10 September 202525.
  5. Budget 2026. Budget 2026 cut funding for the National Centre of Excellence for Mental Health by 12%, from RM24.6 million to RM21.6 million, CodeBlue reported26.
  6. Advocacy. Ahead of Budget 2027, the Malaysian Psychological Association called for at least 1% of the Health Ministry budget, about RM465 million on 2026's RM46.5 billion, to be set aside for mental health, rising to 2% over time27.
  7. Budget 2027. The Health Ministry's allocation rises to RM47.7 billion, from RM46.5 billion28. The budget expands electronic medical records on a 'one individual, one record' principle, with the speech citing a RM1 billion investment by MCMC in the project, and plans fully online licensing for private healthcare facilities from 202729.
  8. The mental-health centre line. CodeBlue reported that Budget 2027 funding for the National Centre for Excellence in Mental Health remained at RM21.6 million30.
  9. Health cover. The Budget 2027 speech said the government will launch the MediAsas plan from January 2027 'at an affordable price', and that EPF members under 55 will be allowed to pay its premiums from their Sejahtera Account31.
Allocations are what was tabled, not money spent. The KRI figure counts one specific allocation, and the national centre's funding is one budget line, not all mental-health spending in hospitals and clinics. The psychologists' 1% is a proposal, not policy. MediAsas is an announcement, and the speech did not say whether it covers mental-health care. The 2025 targets' outcomes were not found when this brief was checked.
If this raises something for you or someone you know: Befrienders Kuala Lumpur, 03-7627 2929 (24 hours, free and confidential, befrienders.org.my); Talian HEAL 15555 (Ministry of Health, 8am to midnight); in an emergency call 999.

The rules and plans every Malaysian mental-health provider works within

  1. Advertising. Private hospitals and clinics in Malaysia generally need Medicine Advertisements Board approval before advertising. Patient testimonials about treatment are not allowed, although testimonials about the premises are32.
  2. Online care. As of July 2025 Malaysia's Telemedicine Act 1997 had not come into force, and Health Ministry guidelines issued in May 2025 set interim minimum standards for online healthcare platform providers that exclude cases requiring psychotropic drugs to be supplied by post, according to law firm Skrine33.
  3. Digital health law. The Edge reported that a proposed Digital Health Act, intended as the main regulatory framework for digital healthcare, was expected to be tabled in Parliament in 202634.
  4. AI triage. The Edge reported that the Health Ministry was exploring AI-driven electronic triage systems, which its digital health division director said could help reduce congestion in emergency departments35.
  5. Doctors on social media. The Malaysian Medical Council's 2025 guideline on sharing information, including on social media, says direct or indirect advertising for personal gain is not appropriate for doctors36.
  6. AI in government health care. Deputy Health Minister Hanifah Hajar Taib said the ministry was introducing AI-driven diagnostics and real-time data dashboards to monitor healthcare facilities37.
  7. Psychologists. At a psychology conference in August 2026, Deputy Minister in the Prime Minister's Department Marhamah Rosli said Malaysia has no specific law regulating the psychology profession, so anyone can claim to be a psychologist, and that the government fully supports efforts to establish a Psychology Act38.
These apply across the sector and are listed as the setting every provider works in, not as a description of any one clinic. The online-care guidelines cover platform providers. The medical council's guideline covers registered doctors, including psychiatrists, but not psychologists or counsellors. The Digital Health Act and a Psychology Act are expectations and statements of support, not law: no bill for either had been found tabled when this brief was checked. The ministry's AI items are plans with no published outcome data.

06Trends to watch

The young screen positive most often

Mental health problems among Malaysian children rose from 7.9% in 2019 to 16.5% in 2023, Parliament's Special Select Committee on Health said2. A psychiatrist citing the 2022 adolescent survey said 26.9% of adolescents screened positive for depression9, and among adults, the youngest age groups screened positive most often in 20236.

More adults screen positive, while the dedicated budget lines have not grown

Parliament's Special Select Committee on Health said the prevalence of depression among Malaysians aged 16 and above rose from 2.3% in 2019 to 4.6% in 2023, about one million people39. KRI estimated mental health's share of the health allocation at about 0.89% in Budget 2024, down from 1.11% in Budget 202324. Budget 2026 cut the national mental-health centre's funding by 12%26, and Budget 2027 kept it at RM21.6 million30.

AI therapy: early results, louder warnings

One US trial reported lower symptoms among chatbot users with depression11, while a Stanford test found therapy chatbots showed more stigma toward alcohol dependence and schizophrenia than toward depression12, and the American Psychological Association says generative AI cannot diagnose or treat psychological disorders14. None of this evidence is Malaysian yet.

The minister expects private spending to overtake public

The health minister described the public-private split in health spending as 'almost like now 50-50' and said private spending would surpass public 'soonest'17. Households paid 38.8% of total health expenditure out of pocket in 2024, the second-largest source of health funding16.

07The problems our guests are solving

An economist who left tech to build for mental health
Malaysia

EP03Barry Ooi · Chengal Centre

An economist who left tech to build for mental health

~1 million

Malaysians aged 16 and above, 4.6%, screened positive for depression in 2023, up from 2.3% in 2019, Parliament's Special Select Committee on Health said39.

237

psychology officers worked in the Health Ministry as of December 2024, according to the Malaysian Psychological Association40. The count covers the ministry, not private practice.

Barry says he left tech after watching his wife's long struggle to find the right care. In the episode he explains why he built Chengal for people who are seriously ill, and what he sees missing between a psychiatric ward and home.

Watch the episode →

See how these conversations connect on the Discovery Atlas →

08Sources

One research agent gathered 56 figures from government, regulator and established data sources. A separate red-team agent then reopened every source, checked each number, its scope and its date, and looked for newer or conflicting data. It kept 27 figures as written, corrected 27 and cut 2. Each figure above links to its source below, with the date it refers to.

  1. Institute for Public Health, MOH: NHMS 2023 fact sheet (2024) · NHMS 2023 (fieldwork 2023, released May 2024)
  2. The Star/Bernama, 22 Jun 2026, reporting Special Select Committee on Health chair Suhaizan Kaiat · NHMS 2019 vs NHMS 2023, as stated to Parliament on 22 Jun 2026
  3. Sinar Daily / Bernama, 7 Nov 2024, quoting Health Minister Dzulkefly Ahmad · Nov 2024
  4. Ministry of Health, Malaysia National Health Accounts: Health Expenditure Report 2011-2024 (2025) · 2024 (MNHA 2011-2024, published 2025)
  5. CodeBlue, 19 Jan 2026, reporting MOH Malaysia National Health Accounts 2011-2023 · 2023 (MNHA 2011-2023)
  6. CodeBlue, 13 Jun 2024, reporting NHMS 2023 · NHMS 2023
  7. The Star/Bernama, 22 Jun 2026, reporting Special Select Committee on Health chair Suhaizan Kaiat · Projection to 2030, stated 22 Jun 2026
  8. The Star via Asia News Network, 29 Sep 2026 · Launched 28 Sep 2026
  9. Bernama, 31 Dec 2024, quoting Prof Dr Ng Chong Guan (Malaysian Mental Health Association) · NHMS 2022 (adolescent survey), cited Dec 2024
  10. The Star via Asia News Network, 29 Sep 2026, quoting Health Minister Dzulkefly Ahmad · 2025 calendar year (police data, cited 28 Sep 2026)
  11. Dartmouth College news, 27 Mar 2025 · Results published 27 Mar 2025 (NEJM AI)
  12. Stanford Report, 11 Jun 2025 · Study reported 11 Jun 2025
  13. OpenAI, 27 Oct 2025 (company's own estimate) · Initial analysis, Oct 2025
  14. American Psychological Association health advisory, Nov 2025 · Nov 2025
  15. Healthcare IT News, 17 Dec 2025 · Dec 2025
  16. Ministry of Health, Malaysia National Health Accounts: Health Expenditure Report 2011-2024 (2025) · 2024 (MNHA 2011-2024, published 2025)
  17. CodeBlue, 19 Jan 2026, quoting Health Minister Dzulkefly Ahmad · Remarks 6 Jan 2026, on 2023 MNHA data
  18. TNGlobal, 12 Aug 2025 · Aug 2025
  19. MobiHealthNews, 22 Aug 2025 · Aug 2025
  20. The Edge Malaysia, 18 Mar 2026 · Debut day, 18 Mar 2026
  21. Tech Collective, 6 Mar 2025, reporting Tracxn's SEA HealthTech and Life Sciences Annual Funding Report 2024 · 2024 calendar year (reported 6 Mar 2025)
  22. Ministry of Health, National Strategic Plan for Mental Health 2020-2025 · Plan period 2020-2025 (now ended)
  23. Media Selangor (Bernama), 7 Nov 2024 · Target set 16 Dec 2021 for 2025 (reported Nov 2024)
  24. Khazanah Research Institute, 24 Nov 2023 · Budget 2024 (estimate published Nov 2023)
  25. Bernama, 10 Sep 2026, statement by Befrienders KL patron Lee Lam Thye · In force 10 Sep 2025
  26. CodeBlue, 10 Oct 2025 · Budget 2026 (tabled Oct 2025)
  27. The Sun, 9 Oct 2026, quoting Malaysian Psychological Association president Assoc Prof Dr Shazli Ezzat Ghazali · Proposal made 9 Oct 2026, before Budget 2027 was tabled
  28. Ministry of Finance, Budget 2027 speech, 9 Oct 2026 · Budget 2027 as tabled, 9 Oct 2026
  29. Ministry of Finance, Budget 2027 speech, 9 Oct 2026 · Budget 2027 as tabled, 9 Oct 2026
  30. CodeBlue, 9 Oct 2026 (updated 14 Oct 2026) · Budget 2027 estimates (tabled 9 Oct 2026)
  31. Ministry of Finance, Budget 2027 speech, 9 Oct 2026 · Budget 2027 as tabled, 9 Oct 2026
  32. MOH Pharmaceutical Services, Advertising Guidelines for Healthcare Facilities and Services (Amendment MAB 3/2023) · Guidelines in effect from 5 Jul 2023
  33. Skrine legal alert, 24 Jul 2025 · Guidelines circular 6 May 2025; Act status as of 24 Jul 2025
  34. The Edge Malaysia (Digital Edge), 26 May 2025 · Reported 26 May 2025
  35. The Edge Malaysia (Digital Edge), 26 May 2025 · Reported 26 May 2025
  36. Malaysian Medical Council, Guideline on the Dissemination of Information by Medical Professionals Including on Social Media (V2/2025) · V2/2025, endorsed 19 Aug 2025
  37. New Straits Times, 12 Mar 2026 · 12 Mar 2026
  38. RTM Berita, 17 Aug 2026 (Malay; translation ours) · 17 Aug 2026 (no bill tabled as of 20 Oct 2026)
  39. The Star/Bernama, 22 Jun 2026, reporting Special Select Committee on Health chair Suhaizan Kaiat · NHMS 2019 vs NHMS 2023, as stated to Parliament on 22 Jun 2026
  40. The Sun, 9 Oct 2026, quoting Malaysian Psychological Association president Assoc Prof Dr Shazli Ezzat Ghazali · Dec 2024 (cited 9 Oct 2026)